PRESS RELEASES | 19/01/2024
Mandatory disclosures and corporate capacity-building critical to drive nature restoration
In a new briefing published today, the Aldersgate Group outlines necessary next steps from Government to accelerate the adoption of high-quality nature-related disclosures. This follows the announcement that 320 businesses and financial institutions have registered as early adopters of the Taskforce on Nature-related Financial Disclosures’ (TNFD) disclosure framework.
Businesses have a strong appetite to start producing TNFD-aligned disclosures, but barriers such as low board level understanding, organisational capacity and lack of access to data are inhibiting progress. To address this, the Aldersgate Group calls on the UK Government to set out a roadmap towards implementing mandatory disclosures, introduce supportive policy to build businesses’ capacity and capabilities, and champion TNFD framework data-sharing internationally.
Through extensive engagement with businesses, the Aldersgate Group has found that there is a clear desire to disclose nature impacts, but further action from the Government is required to enable broad-based adoption of the TNFD framework.
Setting out a phased roadmap for supporting mandatory TNFD disclosures could generate board buy-in and help businesses prepare. Accompanying this, Government and regulators should publish guidance and work closely with professional bodies to build skills.
The new research also highlights the importance of collaboration, particularly through international data sharing. It calls on the UK Government to champion the TNFD framework internationally, and to work with other nations, businesses and data providers to increase the availability of biodiversity data.
Rachel Solomon Williams, Executive Director of the Aldersgate Group, said: “It is positive to see so many businesses and financial institutions commit to disclosing their impact on nature. This important step towards understanding how human activity influences the natural world will provide reliable data that can shape future policy measures. To maximise effectiveness, the Government must now look to provide support and guidance to build capacity within businesses, with a view to making disclosures mandatory through a phased plan in the future.”
Peter Jelkeby, CEO and CSO at IKEA Group UK & Ireland, said: “Nature loss is one of the biggest challenges facing humanity, deeply connected with the climate crisis, and growing social inequality around the world. Nature urgently needs attention and collaboration from us all, which is why we are delighted to become a TNFD early adopter. We believe the TNFD recommendations and guidance will support us in further assessing risks and opportunities, allowing for more targeted positive action. It is important that we address this issue now to ensure the resilience of our business and protect our natural environment for generations to come.”
Michael Marks, Head of Investment Stewardship and Responsible Integration at Legal & General Investment Management, added: “Society uses natural resources as if there is no cost; the value of nature to our society and economy is undeniable, with over half the world’s GDP highly or moderately dependent on nature and its services. The long-term strength of our economies, companies, financial systems and societies depends on the health of nature. It is critical that action is taken to meet global agreements to halt biodiversity loss and reverse the degradation of nature. Nature and natural capital management are strategic issues for LGIM and we have been calling on global policymakers to rapidly adopt TNFD framework perhaps through the IFRS ISSB.”